Question
The comparative statements of Enchanted Ltd are presented here. ENCHANTED LTD Statement of profit or loss for the years ended 30 June 2019 2020 Net
The comparative statements of Enchanted Ltd are presented here.
ENCHANTED LTD | ||
Statement of profit or loss | ||
for the years ended 30 June | ||
| 2019 | 2020 |
Net sales | $1340000 | $1180000 |
Cost of sales | 656600 | 542800 |
Gross profit | 683400 | 637200 |
Selling and administrative expense | 300696 | 439668 |
Finance costs | 27336 | 57348 |
Profit before income tax | 355368 | 140184 |
Income tax expense | 95949 | 35046 |
Profit for the period | $259419 | $105138 |
ENCHANTED LTD | ||
Statement of financial position | ||
as at 30 June | ||
Assets | 2019 | 2020 |
Current assets |
|
|
Cash | 77000 | 70000 |
Accounts receivable (net) | 219000 | 270000 |
Inventory | 47000 | 40420 |
Total current assets | 343000 | 380420 |
Non-current assets |
|
|
Property, plant and equipment (net) | 562400 | 706800 |
Total assets | $905400 | $1087220 |
Liabilities and equity |
|
|
Current liabilities |
|
|
Accounts payable | $288000 | $261000 |
Income taxes payable | 51812 | 19275 |
Total current liabilities | 339812 | 280275 |
Non-current liabilities |
|
|
Loan payable | 437100 | 394800 |
Total liabilities | 776912 | 675075 |
Equity |
|
|
Share capital | 89942 | 284380 |
Retained earnings | 38546 | 127765 |
Total equity | 128488 | 412145 |
Total liabilities and equity | $905400 | $1087220 |
All sales were on account.. The weighted average number of shares is 17988.
Required: Calculate the ratios below for 2020. (Round all answers to 2 decimal places. Use 365 days for calculation.) (1) Earnings per share (2) Return on equity ratio % (3) Return on assets ratio % (4) Current ratio : 1 (5) Quick ratio :1 (6) Debtors turnover times (7) Average collection period days (8) Inventory turnover times (9) Average days in inventory days (10) Times interest earned times (11) Asset turnover times (12) Debt to total asset ratio :1
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